*

Brazil's JBS surges as company inches closer to US listing

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Brazil interest rate decision on Wednesday, Chile on

Friday

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Colombia's peso down after reports finance minister to

leave

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Latam stocks up 0.3%, FX up 0.2%

(Updates to mid-session trading)

By Shashwat Chauhan and Purvi Agarwal

March 18 (Reuters) - Latin American currencies and

stocks were mixed on Tuesday, as investor focus remained on a

slew of interest rate decisions across the world, including in

Brazil, Chile and the United States later this week.

Colombia's peso depreciated the most, down 1%, after

local media reported that Finance Minister Diego Guevara is set

to leave his role amid disagreements with President Gustavo

Petro.

Brazil's real strengthened 0.2%, ahead of a local

central bank decision on Wednesday, where it is widely expected

to hike its benchmark lending rate.

Chile's central bank is also expected to hold rates at 5%.

Its currency appreciated 0.5%, also buoyed by rising

copper prices.

Data showed Chile's economy slowed in the fourth quarter of

2024 from the previous three months. But it gained steam

compared to a year earlier and full-year growth exceeded

official estimates.

"The economy headed into Q1 on a stronger footing, but with

it holding up relatively well and inflation concerns still high,

we expect the central bank to leave its policy rate unchanged,"

said Kimberley Sperrfechter, EM economist at Capital Economics.

The Fed's rate decision on Wednesday will be in the

spotlight, with markets expecting the central bank to hold rates

steady. However, recent uncertainty around U.S. trade policies

and fears of an economic slowdown have led to markets pricing in

greater policy easing by year-end.

"The hit to growth (from global trade war and trade

restrictions) will cause the Fed to look through tariff-induced

price increases and start cutting rates in the second half of

this year," said Matt Colyar, economist at Moody's Analytics.

"The timing for those moves will inch closer if the economy

starts flashing red. "

Jitters around U.S. trade policy have rattled markets, with

the dollar dipping against most developed market peers and

uplifting most EM currencies, including the Mexico peso, that

has been among the most reactive to tariff headlines.

Earlier this month, Trump exempted goods from Canada and

Mexico under a North American trade pact from his 25% tariffs,

with the exception set to expire on April 2.

Argentina's central bank is being forced to sell dollars at

an accelerated rate to prop up the peso amid rising global

uncertainty. The peso was flat.

MSCI's index for Latin American currencies

was up 0.2%. Stocks were 0.3% higher, helped by

bourses in Brazil and Mexico in an otherwise sea

of red.

Shares of meat-packer JBS gained over 18% after

the controlling shareholder of the Brazilian company and

government investment vehicle BNDESPar, the second-largest

shareholder in JBS, signed a deal that puts the company closer

to listing its shares in both the United States and Brazil.

Israel's currency fell and its stock market closed lower as

a wave of deadly airstrikes by its military in Gaza threatened

the collapse of an already fragile two-month ceasefire with

Hamas.

Meanwhile, Russian President Vladimir Putin and U.S.

President Donald Trump agreed to a limited 30-day ceasefire

against energy infrastructure targets in Ukraine, which Ukraine

said it would support.

Ukraine's international bonds were mixed, while the Russian

rouble was last up 2%.

HIGHLIGHTS

** Peru declares emergency as crime wave grips capital,

singer shot dead

** Brazil unveils broader income tax exemption plan as Lula

seeks to regain popularity

** Trump faces court deadline to explain deportation of

Venezuelans

Key Latin American stock indexes and currencies around 1951

GMT:

MSCI Emerging Markets 1145.53 1.25

MSCI LatAm 2132.32 0.25

Brazil Bovespa 131596.52 0.58

Mexico IPC 52783.18 0.57

Chile IPSA 7585.61 -0.21

Argentina Merval 2275304 -3.026

Colombia COLCAP 1621.31 -0.82

Brazil real 5.6714 0.21

Mexico peso 19.9397 -0.06

Chile peso 916.62 0.45

Colombia peso 4110.1 -0.96

Peru sol 3.624 0.47

Argentina peso (interbank) 1067.75 0

Argentina peso (parallel) 1265 -0.790513

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